Genuine Parts Shock Separation Plan Creates Once-in-a-Decade Opportunity

"Genuine Parts ( NYSE: GPC) reported Q4 2025 revenue of $6.01 billion, up 4.1% from $5.77 billion in the prior year. However, the automotive and industrial parts distributor posted a GAAP net loss of $609 million, or $(4.39) per share, compared to net income of $133 million in Q4 2024. Adjusted EPS came in at $1.55, falling short of the $1.836 consensus estimate and declining from $1.61 in the prior-year period. Shares plunged over 12% Tuesday morning, but the stock was still up 4.6% year to date."

"Overshadowing the earnings miss, GPC announced plans to separate into two independent public companies-Global Automotive (NAPA) and Global Industrial (Motion)-in a tax-free transaction expected to complete in Q1 2027. CEO Will Stengel framed the move as a natural evolution: "Creating two focused, independent companies sharpens customer and market alignment, increases clarity and speed, simplifies operations and enables disciplined, business-specific investments to unlock long-term value." The separation aims to provide each business with dedicated management teams and capital allocation strategies suited to their distinct markets."

Genuine Parts reported Q4 2025 revenue of $6.01 billion, a 4.1% increase year-over-year, but posted a GAAP net loss of $609 million driven by $825 million in after-tax non-recurring charges. The charges included a $742 million pension settlement related to terminating the U.S. qualified defined benefit plan, $160 million in credit losses tied to First Brands' Chapter 11 filing, and $103 million from asbestos liability remeasurement. Full-year 2025 sales reached $24.3 billion while adjusted EPS fell to $7.37. Management announced a tax-free separation into Global Automotive (NAPA) and Global Industrial (Motion) expected by Q1 2027, provided 2026 guidance of 3%–5.5% sales growth and $7.50–$8.00 adjusted EPS, and raised the quarterly dividend to $1.0625 per share.

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